What's the Story of the Falling Pound? - Kakiforex.com - Financial Market Media No. 1 in the World What's the Story of the Falling Pound? What's the Story of the Falling Pound?

March 16, 2021

What's the Story of the Falling Pound?

 The benchmark 10 -year US treasury yield rose above 1.6%, pulling back the US dollar to trade higher against most other major currencies.

The dollar index, which measures the strength of the greenback dollar, traded steady around 91.90 at the beginning of the European session.

European currency trading is under risk after more countries in the European Zone delayed the use of the AstraZeneca vaccine due to concerns over the side effects experienced by recipients.

Although AstraZeneca and WHO deny the effect has anything to do with the vaccine, the market remains concerned about the slowdown in vaccination in Europe.

The pound continued to slip to a one-week low following the strengthening of the US dollar below the 1.39000 price level amid the absence of a clear catalyst today, with market focus targeted at the Bank of England (BOE) policy meeting on Thursday.

Meanwhile, in the latest statement by BOE Governor Andrew Bailey told that it will continue its bond purchases this year.

Bailey also expects economic growth in the UK to contract by 4% in the first quarter from the same period last year, and by 19% compared to the first three months of 2019.